PRELIMS 2011 · INDIAN ECONOMY

India has experienced persistent and high food inflation in the recent past. What could b…

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Question

India has experienced persistent and high food inflation in the recent past. What could be the reason?

1. Due to a gradual switchover to the cultivation of commercial crops, the area under cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.

Which of the statements given above are correct?

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